Tightened rules for HMOs by local councils across the country has led to a rise in planning compensation claims by developers, who have incurred additional costs as a result of the changes.

The immediate Article 4 directions change the previous allowances for homes to be converted into houses of multiple occupancy (HMOs) by permitted development rights to require planning permission.

These changes also kick started a 12-month timer for developers’ schemes impacted by the decision to make compensation claims.

What has changed?
Provided it falls within permitted development rights, converting a home (Class C3) into an HMO (Class C4) can be done without a full planning application.

If, however, an LPA introduces an Article 4 direction, planning permission would be required for any such changes. In many cases, the directions take effect immediately which means:

• No grace period for new schemes.
• No ability to rely on permitted development rights going forward.
• All new C3 to C4 conversions require a planning application.